Super Retail Group Limited
ASX-SUL
Company Overview
Super Retail Group Limited engages in the retail of auto, sports, and outdoor leisure products in Australia and New Zealand. It offers automotive parts and accessories, handyman items, and tools and equipment, and marine and motorbike products, including batteries, car care products, exterior accessories, hand and power tools, in-car navigation systems, in-car stereo equipment, lighting and electrical products, oils, filters and additives, outdoor equipment and accessories, seat covers and interior accessories, spare parts, paints and panels, and performance products. The company also provides footwear, fitness and sports equipment, apparel, and related accessories; fishing products, such as lures, rods and reels, tackle boxes, fishing nets, and other products; camping products, including tents, ropes, pegs, cooking equipment, and clothing and hiking gears, as well as boating products comprising fishing rod holders, bilge pumps, fish-finders, etc. In addition, it offers apparel and equipment for mountain climbers, campers, hikers, and others; and products for travel, touring, outdoor, garage, and shed, as well as vehicles for adventure activities. The company sells its products under the Supercheap Auto, rebel, BCF, and Macpac brands; and offers its products online. It operates 716 stores. Super Retail Group Limited was founded in 1972 and is based in Strathpine, Australia.
Name
Super Retail Group Limited
CEO
Paul Bradshaw
Website
www.superretailgroup.com.au
Sector
Specialty Retail
Year Founded
1972
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Bulls Say
The group boasts an impressive management team, evidenced in continuous working-capital improvements and driving cost efficiencies.
Relatively large scale helps the firm consolidate its market share in the brick-and-mortar channel when competition is intense and smaller competitors are exiting.
The large store network, facilitating click-and-collect distribution, and increasing private-label sales are advantages. Yet, ongoing strong growth in its online channel could require a rationalization of the network longer term.
Bears Say
The core business in automotive has limited growth opportunities. Increasing complexity of cars means motorists could be less inclined to maintain their own vehicles, weighing on sales for the Supercheap Auto division.
The Rebel Sport Group is facing intense competition. Increasing competition from online and traditional channels is expected to put downward pressure on operating margins.
Many of Super Retail's product categories are discretionary and consumers are likely to reduce spending in an economic downcycle.